BR 25.11.08 Update

kezza90

Hi, I went BR on 25.11.08 and just thought i'd give an update for those who are planning on going down the BR route. The OR telephoned me the next day to ask the reg of my car and to ask how much unsecured debt I had. I explained to her I had opened a Coop acc and she said it was ok to use it. On Saturday I received a letter from them to say that they are so busy my case has been passed to the Leeds office and they will be in touch to say if i'm going to be interviewed or not. Is there a chance I wont get interviewed? Also, as I've read previously on this forum I need to notify them within 21 days of any changes in I&E, is that the case for me now or do I wait until I receive something from them which explains this? I ask as I'm due a pay rise at the end of Dec and also my mortgage payment should go down slightly, typical isnt it!!

Many thanks

chelseabun_3

Hi kezza,

if your pay goes up at the end of Dec then you have 21 days from the date it actually goes up to inform the OR. You have to do this whether or not you've already had the interview with them. Ditto with the mortgage, unless it's a difference of pence! If it's a very small change then they may not adjust your IPA (if you have one) but you do have to let them know.

Do the two changes combined take you over the £99 threshold for an IPA? If so you definitely need to look at your SOA asap to see if you can adjust it or not.

hth CBx

kezza90

Hi, the OR telephoned me today to make an appointment for my telephone interview, its going to be on 11th Dec. I have read so many posts that recommend not waffling, yet even on the short call I had with her I still managed to waffle and talk about my situation. I really hope I manage to hold it together for my telephone interview. Will I mention my payrise at that point? On my outgoings I think I had £7 per month spare if they agree to it, but if my payrise goes on and my mortgage goes down it may take me over £99 per month, typical!!!

She also asked me questions about my flat as there is equity in it, she asked me how much there was. Does anyone know if its likely if i cant afford to buy back the BI will they take my property off me? In the current market it would be doubtful they could sell it so would they go to the hassle of it?

chelseabun_3

Hi again kezza,

My advice would be to not mention the payrise or mortgage reduction until they have actually happened and the difference is in your bank account (or grubby little mitt, whichever suits!;):D) Reason being, the pay rise may not be as much as you think, and ditto the mortgage reduction. Once you've had them you still have the 21 days to advise the OR.

Re the flat, I assume you're living in it, it's not a btl rented out? Best option would be to get an estate agent or several to value it for a quick sale and put their advice in writing. That way you're ready for the OR with that info. You might be surprised at how little equity is left in it now! My house has been valued at approx £160k (which is what I paid for it) but valuation for a quick sale is £145k, hence £15k neg equity.

hth CBx

kezza90

Thanks CB.

I did get my flat valued a little while ago, they valued it at 85k in the letter they sent but when speaking to the estate agents they said i'd have to ask less than 80k to actually sell. (I have outstanding mortgage of 63k). My issue is the flat is leasehold, and I was selling the flat a little while ago but it fell thro because of the lease, there are only 61 years left on the lease (top 99 years) and mort co's stipulate there must be at least 65 years, a new leases is 7k to buy!!! So I was hoping if I explain this to estate agents they may knock this 7k off the value and therefore take it down a little?

Does anyone know if you can "haggle" with the OR over the price you pay for BI?

Many thanks xx

chelseabun_3

Definitely tell the OR about the lease stipulation and the £7k. Also in light of that it's definitely worth getting a couple of quick sale valuations in writing. The OR has to take into account estate agents fees and any other sale expenses, so if there's less than around £6k value in the property they are unlikely to bother with taking it. They may not bother simply because of the lease - you can always hope!!

If you've got written evidence of valuations you can use that to haggle over the value of the BI. Hope it works out! CBx